Maeda Palius
on
March 25, 2020

RE: WHAT IS THE GOVERNMENT DOING ABOUT OUR TAXES DURING THE COVID-19 CRISIS?

To Our Valued Clients and Friends,

We hope that you and your family are staying safe and healthy as we all learn to adjust to this new “normal.” However, amid so many changes, we want to provide you with some GOOD NEWS regarding changes to the tax filing deadlines.

WHAT? THE IRS DEFERRED THE 4/15 TAX FILING DEADLINE!!!
Yes, you have heard correctly! The IRS has automatically extended all 2019 tax returns, whose original filing dates were April 15, 2020, until July 15, 2020. This specifically applies to Individual Tax returns (1040’s), C-Corp Tax Returns (1120’s) and Trust Tax Returns (1041’s). It also includes any other entity with a fiscal year-end requiring an April 15th filing due date.

CA FRANCHISE TAX BOARD IS IN ALIGNMENT?
Yes, the CA Franchise Tax Board is conforming to the July 15th deadline as well.

WHAT? NO PAYMENTS ARE DUE EITHER?
Correct, again! Federal and California 2019 income tax payments, which were originally due with returns being filed by April 15, 2020, have also been extended until July 15, 2020. This means any 2019 Income Tax and 2020 1st Quarter Estimated Tax payments are deferred until July 15, 2020.

WHAT HAS NOT BEEN CHANGED? (AT LEAST NOT YET)
All 2020 2nd Quarter estimated tax payments, currently due June 15, 2020, remain due on that date. As of now, these payments have NOT been extended.

WHAT IS UNKNOWN?
It is unknown whether the extended due date of July 15, 2020 will apply to IRA or HSA payments. We are currently waiting for guidance from the Treasury in this regard and we will provide clarification once this information is available.

As always, feel free to reach out with any questions or concerns.

Wishing You Continued Health & Safety,

Maeda Palius, Jason Janzen, Annika Jensen and the POJ Team

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